What to do if you have difficulty paying your mortgage

If you are having difficulty paying your mortgage, we will try to help you.

What we will do

• If you're having trouble paying your mortgage, our aim is to always treat you fairly and help you find a solution.
• We'll contact you to discuss any problems at the earliest opportunity.
• If you want us to, we'll talk to any agency that is offering you debt advice, such as the Citizens Advice Bureau.
• We may be able to arrange a new payment plan with you.
• We may also be able to change the way you make payments, or the date you make them.
• Another option could be for you to pay back your mortgage over a longer period. This could reduce your monthly payments.
• We could even change the type of mortgage you have.
• Whatever happens, we'll give you reasonable time to pay back the debt.

Please note
Paying back your mortgage over a longer period will increase the overall cost of your mortgage.

If we're unable to offer you any new options, we'll explain why.

If we can make fresh arrangements with you, we'll explain how everything works, and give you time to consider this.

If we can't offer any of these options, and depending on your circumstances, we might agree to you remaining in the property and selling it yourself.

We'll only start proceedings to repossess your home if we cannot solve the problem with you.

What you can do

• If you're having problems repaying your mortgage, or think you might run into difficulties in the near future, tell us as soon as you can.
• If we contact you first about any problems, please get back to us quickly.
• If you've got an insurance policy check to see if it covers your payments.
• Find out if you're eligible for state benefits or tax credits, which could help increase your monthly income.
• If you think you need help managing your finances, it's a good idea to talk to a professional advisor, such as a debt counsellor.
• Make sure you keep any other people who are responsible for paying the mortgage, or anyone guaranteeing the mortgage, up to date with what is happening.
• It's vital you keep to the agreed payment plan, or tell us if there's any change in your circumstances that may affect the arrangement.
• If you don't make the agreed payments, we might have to go to court to get back any money you owe us. As a last resort, we may even have to repossess your property.
• If you're moving to a new address then let us know.

Please note
Before you change your mortgage arrangements you may wish to seek independent, free, debt advice from a professional advisor such as a debt counsellor or lawyer.

If you're in arrears, we may charge you for our reasonable administration and legal costs.

What happens if we can't agree on a solution?

• We may send a mortgage debt counsellor to see you to discuss your financial circumstances. The cost of the visit
  may be charged to your mortgage account.
• We may go to court to start proceedings to repossess your home. If proceedings take place, we strongly recommend
  that you attend court and seek independent debt advice.
• Starting court proceedings does not necessarily mean we'll repossess your home. We'll keep trying to solve the problem with you. Repossession is a last resort.
• If repossession is unavoidable, we'll give you information about getting in touch with your local authority to see if they can help find you alternative accommodation.

What happens if your home is repossessed?

• We'll try to sell it as soon as possible and we'll aim to achieve the best price we can reasonably get.
• We'll give you fair time to take your possessions from your home.
• We'll use the money raised from selling your home to pay your mortgage, and any other loans or charges secured on it.
• You'll receive any money left over.

What if selling your home doesn't raise enough money to pay off the mortgage?

• If there's not enough money from the sale to pay the whole mortgage, you'll still owe us the amount left. This is known
  as shortfall debt.
• We'll tell you what this is as soon as possible.
• If you bought your home with other borrowers, each of you is responsible for the total sum borrowed, even if you normally only pay part of the mortgage.
• We may contact you within six years of selling your property (five years in Scotland) to arrange for you to pay back what you still owe.
• When we arrange a payment plan to pay off your shortfall debt, we'll take into account your income and outgoings.
• If we can't arrange a suitable plan, we may go to court to get our money back. You might have to pay additional court costs if this happens.
• If a shortfall debt isn't paid, it could affect whether you're able to get credit in the future.

Other issues
Some companies may offer you new loans. They may also invite you to sell your property to them, allowing you to lease it back as a way of resolving your short-term financial difficulty.

Please be very careful. Such actions may not be in your best long-term interests.

We advise you to seek independent advice before entering into any arrangements of this type.

You may be thinking about handing your keys over to us. If you do this, you won't be walking away from your problems. You'll still owe us the outstanding debt, so please discuss this option with us before taking such action.

Complaints

If you think you've been treated unfairly, you have the right to complain.

You should contact:

Standard Life Bank, Customer Relations Team, Dundas House, 20 Brandon Street, Edinburgh EH3 5PP

Tel: 0131 246 0118

If your complaint isn't dealt with to your satisfaction, you have the right to take it to the Financial Ombudsman. The Financial Ombudsman Service provides a free and independent service for consumers.

They can be contacted at:

The Financial Ombudsman Service,
South Quay Plaza, 183 Marsh Wall, London E14 9SR
Tel: 0845 080 1800

Talk to us

You can contact us on 0131 246 1093, or via an alternative method in our contact us section.